12 Important Points regarding Section 8 Company
Following are the 12 Important Points regarding Section 8 Company: –
1. The General Meeting of Sec. 8 Company can be conducted with Notice of 14 Clear days instead of 21 days.
2. Revised SS-1 & SS-2 is not applicable. Provisions of Companies Act, 2013 will prevail.
3. ₹ 2000/- is required to pay for License Application ( form INC-12).
4. Incorporation through spice mode is applicable to Sec. 8 Company also ( up to 7 Subscribers Only ).
5. Section 8 Company may have any number of Directors.
6. If a Person holding office as a Director in more than 20 Companies Can still be appointed as Director in a Sect. 8 Company.
7. Board Meeting Quorum Requirement:-
Eight Directors or 1/4th of Total Strength – Whichever is Lower Subject to the minimum of 2.
8. There should be minimum 1 Board Meeting within every Six Calendar Months.
9. Appointment of Independent Director is not Compulsory.
10. Provisions w.r.t. Nomination & Remuneration Committee is not applicable.
11. Amalgamation of Sec. 8 Company shall be with Another sec. 8 Company having Similar Objects.
12. Income & Expenditure Estimation for Next 3 Financial Years is also a Mandatory attachment of form INC-12.
The basic difference between section 8 company and other companies: Difference between Trust, Society and section 8 Company.
CA Amresh Vashisht
Meerut
